China’s Takes Economic Risks to Gain Political Influence

There are myriad initiatives — but will they be successful?

BOATS AT THE GWADAR PORT IN PAKISTAN ON THE ARABIAN SEA. China Overseas Ports Holding Company is leasing the port until 2059 and has already started expanding it. China has been looking to secure sea trading lanes along the so-called Maritime Silk Road, and the Pakistani port is an important piece in the puzzle. J. PATRICK FISCHER/CC BY-SA

Since the current regime leader Xi Jinping came to power in 2012, China has launched many a prestige project, like the Asian Infrastructure and Investment Bank (AIIB). Ostensibly they are for economic development in the region, however most experts agree that this is just one reason for the massive Chinese investment in trade and infrastructure abroad.

“China has a deliberate strategy to translate its economic capabilities... all of the tools it has in its disposal, to translate that into political influence,” said Evan Medeiros, head of Asia-Pacific research at Eurasia Group, at the Foreign Policy Association’s World Leadership Forum in New York Sept. 28.